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Step 1
Analyze your budget and determine the maximum monthly payment you can afford. Using this information, find an online loan calculator and to determine the maximum amount of money you can afford to borrow. You should not apply for a loan that you cannot afford to make payments on, or you will risk defaulting on your loan, in which case the assets you used for your secured loan may be seized by the lending institution.
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Step 2
Make a list of valuable assets you own and calculate their approximate worth. These assets need to be assets that can be sold quickly and turned into cash, or the lender will not be interested in them. They should also be small in number. Generally items with a larger price tag (such as a mortgage, land, a newer model car, or a boat) are best. You must own the assets outright. If you are still making payments on something, you do not own it. An exception can be made though if you have some equity in the asset. If for example you are making payments on a mortgage, but the value of the property is more than the remaining balance you still owe.
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Step 3
Build up your credit score. Even though the assets you are using to leverage you loan will help you get approved without a perfect credit score, your credit score will still directly affect your interest rate. A lower interest rate could save you thousands of dollars - depending on the length of the loan and the amount of the loan.
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Step 4
Find a lending institution such as a bank or credit union that offers personal secured loans. You can usually apply online if you prefer not to sit face to face with someone initially, or you can visit a branch near your location and talk with a personal banker who will walk you through the process. Be prepared to provide documentation of the assets you want to use for your secured loan (car title, deed, etc.). You will also need to provide and prove other information such as income, address, place of employment, and other financial information.
